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MEMORANDUM ASSIGNMENT 3: ANALYSIS OF USMCA FREE TRADE AGREEMENT

Essay Instructions:


 MEMORANDUM ASSIGNMENT 3: 
 ANALYSIS OF USMCA FREE TRADE AGREEMENT 
 This assignment is designed to: 
 1. Improve your policy analysis skills by developing your ability to analyze the impact of policy decisions on stakeholder groups. This assignment will focus on international trade.  
2. Develop your ability to write memoranda for decision makers. 
 Rules:  
1. Help sessions will be held after class on Monday, March 25. Please ask questions before the assignment is due. No questions will be answered on the due date.1  
2. See the section of the coursepack and the class notes on trade blocs (free trade agreements) to review the concepts relevant to this assignment. 
3. Refer to the handout “Memoranda Guidelines” for information on the format for writing memoranda. 
4. Your grade will be determined by the quality of your analysis and the quality of communication (spelling, grammar, organization, clarity). 
5. You may complete this assignment alone or as a team of two persons.  If you work in a team of two, then both partners are subject to the “joint and several liability rule” discussed in the syllabus. 
6. Your memorandum is due on WEDNESDAY, APRIL 3 at 500pm EST. Only submissions through the D2L drop-box will be accepted. Late penalties are described in the syllabus.. 
The next page provides background information for the memorandum. The last two pages provide the grading rubric for this assignment. Combine this information with the material in the coursepack and the class notes to write your memorandum.    April 3, 2019  TO:  You  FROM:   Secretary of Agriculture Sonny Perdue S.P.  SUBJECT: Request for analysis of proposed U.S.-Canada Free Trade Agreement  US and Canadian agri-food sector players want an updated assessment of the potential effects of the recently re-fashioned NAFTA agreement (now called USMCA). I must provide an analysis of this agreement to the House Agriculture Committee.  Please prepare a memorandum that addresses the following:  1. What is the status of the food markets in Canada based on such factors as income and population trends, consumption trends, and the state of their food processing, distribution, and retailing industries?  What other countries are major competitors with U.S. exporters in the Canada food market?  2. What is the existing pattern of food trade between the United States and Canada (U.S. exports to Canada and U.S. imports from Canada)? What are the main agri-food products traded between the countries? What are the import tariffs and other trade barriers used on agriculture and food products by each country?  What is the potential for growth of U.S. agricultural/food exports to Canada and will there be an increase in agricultural/food imports from Canada if both countries remove tariffs and barriers on these products?  3. I have received letters from U.S. agricultural interest groups and the Grocery Manufacturers Association (GMA) claiming that the growth of their exports to Canada is being reduced by free trade agreements that Canada has signed with several other countries, (e.g. The Trans-Pacific Partnership). How can U.S. companies be damaged by those agreements since the United States is not a member of those agreements?  Do you agree with the claims of these groups?  
 4. How can the issues raised by the interest groups be addressed in the USMCA agreement? What is your projection of the future of U.S.-Canada trade if we do not approve the USMCA and remove trade barriers? Based on your analysis, please conclude by indicating 1or 2 issues that you believe the U.S. negotiators must address in a free trade agreement to increase common good through trade. Explain why these issues are the most important. 
 The following items might be helpful in your analysis (all items are available on D2L): a. The USDA’s Global Agricultural Information Network (GAIN) report on food markets and export potential in Canada. b. The USDA’s BICO reports on U.S.-Canada food product trade (U.S. exports to Canada and U.S. imports from Canada). c. The U.S. Trade Representative’s report on Canada’s trade barriers on U.S. products. d. A list of U.S. import tariffs. 
  Please provide as much detail as possible. Also remember to include a graph/table that highlights your most important point.. MEMORANDUM 3 GRADING RUBRIC  Names(s):__________________________  Does memorandum meet page, margin and font requirements?    Yes____ No_____ (return) 
Canada food market analysis Detailed analysis of Canada market and competing food trade partners  2 points ______ Analysis of Canada market and competitors, but with details missing   1 points  ______ 
Comments     U.S.-Canada trade pattern analysis Detailed analysis of U.S.-Canada trade pattern (products, import and export patterns)   2 points ______ Analysis of U.S.-Canada trade pattern, but some details missing        1 points ______ 
Comments   World.-Canada trade pattern analysis Detailed analysis of Canada trade pattern with other countries    2 points ______ Analysis of Canada trade with other countries, but some details missing        1 points ______ 
Comments     U.S. agricultural interest group/GMA issue analysis Includes detailed analysis and evidence regarding issue, (and graph/table)   2 points ______ Missing some details of issue analysis, or some evidence   1 points ______   Comments 
Conclusion on major negotiating issues Identifies major issues, links to impact of USMCA and provides basis for importance    2 points ______ Identifies only some issues or fails to either show impact of USMCA or explain importance   1 points  ______ 
Comments       Quality of communication  There are no points for correct grammar. However, points will be deducted for incorrect spelling and grammar.Memorandum contains:   Spelling and grammar error: 2.5 point penalty/error.  _____   Factually incorrect statements in memo: 5 point penalty/item   _____   Memo poorly organized, e.g. long paragraphs, poor flow.  2 point penalty  _____ 
Comments:      TOTAL:        _____/10  

Essay Sample Content Preview:
Student Name
Course
Instructor
Date
Memo 3
March 25, 2020
TO: House Agriculture Committee
FROM:
SUBJECT: Potential Effects of the Recently Re-fashioned NAFTA Agreement (USMCA)
Canada Food Market Analysis
Canada is one of the most developed countries in the world and its food market continues to thrive and flourish. Canadians are highly conscious on the types of foods they consume and a majority of them who are financially stable try and eat balanced diets daily. It is estimated that about 56% of Canadians purchase organic foods weekly from retail outlets situated all over the region (Nfda.ca n.p). The other half consumes fresh produce from their home gardens and farms. Additionally, it is essential to note that the elderly Canadians are more inclined to purchasing foods with nutritional values compared to their young counterparts who tend to look for quick fixes to their hunger issues and as such, flock fast food outlets. The food and beverage processing industry is very essential to the Canadian economy and accounts for about 17% of Canadian manufacturing. It is estimated that there are over 6500 food and beverage processing establishments in the region (Nfda.ca n.p). Canada’s food distribution industry comprises of over 80000 food operators and as such, it is the second largest commercial sector in the region. Additionally, the food retailing industry in Canada comprises of food products sold in supermarkets and grocery stores, mass merchandisers and specialty stores among others. For instance, there are over 9000 food and beverage stores in Ontario, Canada and about 5400 grocery stores in the same region (Nfda.ca n.p). Costco and Kraft Heinz have been identified as the leading grocery store and food and Beverage Company in Canada.
US-Canada Trade Pattern Analysis
The US and Canada have been trade partners for many years with both countries depending on each other for the import and export of various agricultural commodities. These trade activities have been facilitated by the North American Free Trade Agreement (NAFTA) that was established in 1994. NAFTA has not only helped to reduce trading costs but also increase business investments (Ustr.gov n.p). NAFTA was recently redefined to the United States Mexico Canada Agreement (USMCA). Several agricultural products are traded between Canada and the US. It is reported that the total exports of agricultural products from the US to Canada totaled over $24 billion in 2018 (Apps.fas.usda.gov n.p). Some of the top food exports to Canada include fresh fruit and vegetables, non-alcoholic beverages, meat, dairy, coffee, fish, tea and spices. Similarly, it is estimated that the US imported about $23 billion in agricultural products in 2018 from Canada (Apps.fas.usda.gov n.p). The leading categories during that period included snack foods, vegetable oil, red meats, and processed fruits and vegetables. There have been recent developments particularly since the Trump administration came to power that have seen import tariffs and other barriers instituted by both countries. Canada has imposed a 10% import tariff on various food commodities including coffee, maple sugar, candy, cucumbers, strawberry jam, soy sauce, mayonnaise, soups and broths, dairy and whiskey. ...
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